Kota Kinabalu: BioSeaga Industries Sdn Bhd and Oiltek Sdn Bhd have signed a Heads of Agreement (HOA) for a USD350 million (RM1.65 billion) Sustainable Aviation Fuel (SAF) production facility in Sabah.
Announced on Thursday (April 2), the project underscores Sabah’s growing role in advancing green energy and sustainable aviation in the region.
The facility is designed with a planned capacity of about 300 metric tonnes per day, utilising Palm Oil Mill Effluent (Pome) and Used Cooking Oil (UCO) as feedstocks.
The first phase carries an estimated contract value of USD350 million, with a second phase to expand into black pellets and green hydrogen development.
BioSeaga Chairman Dr Nasiruddin Latif said the project focuses on “high-impact sustainable fuel projects” while strengthening regional environmental outcomes.
Its Chief Executive Officer, Dato’ Emir Mavani, said the company is leveraging “global partners with proven track records” to ensure smooth implementation.
Oiltek Executive Director cum Chief Executive Officer Henry Yong Khai Weng said the group is “uniquely positioned” to deliver the required technology and EPCC capabilities for the project.
The project is targeted to commence in the fourth quarter of 2026, with about one-third of output for local drop-in fuel use and the remainder exported via Brunei after blending.
